[Dec 13, 2025] Get Unlimited Access to CFE Certification Exam Cert Guide
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Introduction to ACFE CFE Certification Exam
The accounting profession requires workers to become students throughout their lives, keeping up to date with the latest laws and regulations governing their field. For this reason, many accountants specialize in a sub-area, such as fraud. Fraud costs companies billions of dollars every year, and as criminals get smarter, companies must do it too. To prevent and detect fraud, companies turn to industry experts called Certified Fraud Examiners (CFE).
In the late 1980s, the Association of Certified Fraud Examiners (ACFE) launched the CFE certification. Since then, fraud examiners around the world have obtained this certification to learn about the best fraud prevention practices and advance their careers. CFEs have specialist accounting skills and a deep understanding of how criminals attempt to defraud businesses.
This article explains what a CFE is and how to become a certified fraud examiner. At the end of the article, you can read an interview with a practicing CFE.
To be eligible to take the CFE Exam, candidates must meet specific requirements set by the ACFE. They must have a bachelor's degree or equivalent, two years of professional work experience in a field related to fraud detection and prevention, and membership in the ACFE. Candidates who do not meet these requirements may still be eligible to take the exam if they have a sufficient amount of work experience in the field of fraud examination.
NEW QUESTION # 87
According to fraud tree, cash has three following schemes:
- A. Fraud analysis, skimming and cash misappropriations
- B. Skimming, cash larceny and fraudulent disbursements
- C. Cash larceny, cash distribution and fraudulent disbursements
- D. Cash distribution, skimming and fraud analysis
Answer: B
NEW QUESTION # 88
In physical tampering prevention technique, hidden images can be seen only when the check is held at an angle through:
- A. Holographic safety inks
- B. Watermark backers
- C. Chrome coloring
- D. High-resolution sprays
Answer: B
NEW QUESTION # 89
A shell company scheme in which actual goods or services are sold to the victim company is known as:
- A. Allocation scheme
- B. Maintenance scheme
- C. Pass-through scheme
- D. Distribution scheme
Answer: C
NEW QUESTION # 90
Any expenses that are incurred but not paid by the end of the year are counted in our records of profit and loss, are called:
- A. Financial record
- B. Accruals
- C. Depreciations
- D. Expenses
Answer: B
NEW QUESTION # 91
The scheme which reduces victim companies to issue fraudulent payments for goods or services that they have not received is called:
- A. Reliance billing
- B. Bogus claims
- C. Billing scheme
- D. Misappropriate claims
Answer: B
Explanation:
Section: Fraud Prevention and Deterrence
NEW QUESTION # 92
Multiple cashiers operate from a single cash drawer without separate access codes is a red flag for:
- A. Force inventory scheme
- B. Register scheme
- C. Disbursement scheme
- D. Fraudulent scheme
Answer: B
Explanation:
Section: Fraud Prevention and Deterrence
NEW QUESTION # 93
A running count that records how much inventory should be on hand is referred to:
- A. Perpetual inventory
- B. Altered inventory
- C. Fictitious inventory
- D. Shrinking inventory
Answer: A
NEW QUESTION # 94
By removing a tangible asset from the business (a debit), the books will be ___________ by the exact amount of the tangible asset misappropriated.
- A. False debits
- B. Journal Entries
- C. None of all
- D. Out-of-balance
Answer: D
NEW QUESTION # 95
Depreciation is especially applicable when companies try to overvalue their assets and net worth; the lower their depreciation expense, the higher the company's profits.
- A. False
- B. True
Answer: B
Explanation:
Section: Financial Transactions and Fraud Schemes
NEW QUESTION # 96
A typical issue involving material and fraud would be:
- A. Civil lawsuit
- B. Quality control
- C. Misappropriations
- D. Fraudulent statement
Answer: C
Explanation:
Section: Financial Transactions and Fraud Schemes
NEW QUESTION # 97
___________ is to allow the owner, investors, creditors and others with an interest to know the appropriate book worth of the business at a particular date.
- A. Balance sheet
- B. Financial record
- C. Income statement
- D. Equity
Answer: A
Explanation:
Section: Financial Transactions and Fraud Schemes
NEW QUESTION # 98
In Cressey's fraud triangle, its three of the legs are Opportunity, Pressure and
- A. None of the above
- B. Rationalization
- C. Isolation
- D. Violation
Answer: B
Explanation:
Section: Fraud Prevention and Deterrence
NEW QUESTION # 99
A technique by which checks are numbered using a new technique that is revealed by a colored highlighter pen or by a bright light held behind the check is called:
- A. None of the above
- B. Holographic safety border
- C. Microline numbering
- D. Embossed pearlescent numbering
Answer: B
NEW QUESTION # 100
The most common method of detection in corruption cases is:
- A. By accident
- B. Tips
- C. Internal audits
- D. Internal controls
Answer: B
NEW QUESTION # 101
The fraudsters' interest lies with an employer other than a company.
- A. True
- B. False
Answer: B
Explanation:
Section: Fraud Prevention and Deterrence
NEW QUESTION # 102
The fraudsters' interest lies with an employer other than a company.
- A. True
- B. False
Answer: B
NEW QUESTION # 103
Physical tampering prevention is a check tampering technique that is used to secure bank assisted controls.
- A. True
- B. False
Answer: B
NEW QUESTION # 104
Which of the following are the classifications for the Corruption?
- A. Overbilling, bribery, bid-ridding and illegal gratuities
- B. Corruption, bribery, economic extortion, conflicts of interest
- C. economic extortion, bribery, illegal gratuities and corruption
- D. Bribery, economic extortion, illegal gratuities and conflicts of interest
Answer: D
Explanation:
Section: Fraud Prevention and Deterrence
NEW QUESTION # 105
Which of the following is not the skimming scheme?
- A. Theft of checks through the mail
- B. Understand sales and receivables
- C. Unrecorded sales
- D. Fraud & Cost
Answer: D
NEW QUESTION # 106
What can make it easy for an employee to skim sales or receivables?
- A. Poor collection and recording procedures
- B. Register manipulations and recording procedures
- C. Internal audits and recording procedures
- D. Revenue sources and recording procedures
Answer: A
NEW QUESTION # 107
A voucher is:
- A. a figure that includes the sale order that was send to the dealer, the vendor invoice listing the cost and quantity of items sold, and the internal receiving reports that verify the purchased items have been delivered.
- B. a file that includes the purchase order that was send to the vendor, the vendor invoice listing the cost and quantity of items purchased, and the internal receiving reports that verify the purchased items have been delivered.
- C. a report that includes the purchase order that was send to the vendor, the vendor invoice listing the quality and quantity of items purchased, and the external receiving reports that verify the items have been sold.
- D. a mammogram that includes the purchase order that was send to the purchaser, the purchaser invoice listing the benefits and quantity of items purchased, and the internal receiving reports that verify the purchased items have been sold.
Answer: B
NEW QUESTION # 108
The more power a person has over the bidding process, the more likely the person can influence the selection of a supplier.
- A. False
- B. True
Answer: B
NEW QUESTION # 109
A shell company scheme in which actual goods or services are sold to the victim company is known as:
- A. Allocation scheme
- B. Maintenance scheme
- C. Pass-through scheme
- D. Distribution scheme
Answer: C
Explanation:
Section: Fraud Prevention and Deterrence
Explanation
NEW QUESTION # 110
Which of the following is NOT the example of bribery prevention policies?
- A. Discounts
- B. Reporting gifts
- C. Resource diversions
- D. Business meetings
Answer: C
Explanation:
Section: Fraud Prevention and Deterrence
NEW QUESTION # 111
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